OriginProtocol / OriginProtocol/origin-dollar
Add No-Fee OUSD Redemption Strategist Function
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Description
Currently the Curve Pool is imbalanced which has brought the peg for OUSD to $0.996 - this means that people are not able to exit their positions without taking a significant amount of slippage (~2 months of trailing yield). The OUSD metastrategy proposal would help this, rebalancing the pool by adding more 3CRV to the pool (and booking a profit in the process).
However, this is not sustainable as this 3CRV has to come from OUSD’s strategy allocation and eventually could exceed the limits the community would like for allocation to this strategy relative to the other strategies (eg. Aave, Compound, Convex, etc.).
To get out ahead of this possibility, OUSD would need a way to rebalance the pool by redeeming OUSD for the underlying USDC collateral automatically without the redemption fee, and then this could be reallocated to the desired strategy allocations.
This could be accomplished through a simple swap and redeem function, such that some portion of the USDC/DAI/USDT backing is swapped for OUSD in the Curve Pool when favorable arbitrage is available, and then the returned OUSD is redeemed 1:1 without the exit fee by the strategist.
Steps:
Swap USDT/USDC/DAI for OUSD
Redeem OUSD for USDT/USDC/DAI with no fee
Reallocate USDT/USDC/DAI according to strategy allocation
Things to keep in mind - this should only be done when profitable, taking into account gas costs net of protocol fees.
Contributor guide
No contributing guide indexed for this repository
First steps
- Read the whole issue, then the project's contributing guide.
- Comment on the issue to say you are picking it up — it saves two people doing the same work.
- Fork the repository and make your change on a branch.
- Open a pull request that references the issue number.
Research direction
The issue names the Curve Pool, OUSD redemption flow, and strategist operations but no files or tests. Start by locating the existing swap, redemption, fee, and strategy-allocation entry points, then trace how strategist permissions and profitability checks are handled. Done means a strategist-only path can perform the stated swap, fee-free redemption, and reallocation safely when net profitable.
Written by the indexing model from the issue text.
Assessment
- Tech stack
- solidity
- Domain
- blockchain
- Issue type
- Feature
- Difficulty
- 5/5
- Estimated time
- Over a week
- Activity status
- Stale
- Clarity
- Mostly clear
- Newbie friendliness
- 30/100